BUSINESS

KLCCP STAPLED GROUP'S Q1 PROFIT RISES TO RM183.9 MLN

07/05/2019 03:50 PM

KUALA LUMPUR, May 7 (Bernama) -- KLCCP Stapled Group (KLCCP), comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, posted a net profit of RM183.95 million for the first quarter (Q1) ended March 31, 2019, up 1.8 per cent from the corresponding period last year.

Both the office and retail segments recorded year-on-year (y-o-y) profit growth, but the hotel operations, represented by Mandarin Oriental Kuala Lumpur, swung to a loss due to intense competition in the banqueting market and higher depreciation on the fully refurbished rooms.

In a filing with Bursa Malaysia today, the group said revenue increased to RM353.45 million from RM345.11 million a year earlier due to stronger contribution by the retail and management services segments.

The office segment's profit before tax (PBT) grew 0.9 per cent y-o-y to RM121.42 million in the quarter under review on almost flat revenue of RM149.33 million, mainly thanks to the lower expenses and higher recovery of utility charges at Menara ExxonMobil.

Meanwhile, higher rental rates and occupancy boosted the PBT of the retail segment -- represented by Suria KLCC and the retail podium of Menara 3 Petronas -- by 4.7 per cent to RM98.65 million while revenue went up 5.1 per cent to RM129.96 million.

The management services segment, comprising facilities management and car parking management, saw a 5.2 per cent y-o-y increase in revenue to RM49.93 million and a 6.9 per cent growth in PBT to RM18.89 million, contributed by additional revenue from one-off projects under the facilities management.

On the hotel segment, KLCCP said Mandarin Oriental's occupancy jumped to 64 per cent from 53 per cent in Q1 2018 with newly furbished rooms.

However, its revenue declined 3.4 per cent y-o-y to RM42.42 million mainly attributable to lower demand in banqueting, further impacted by the slower meeting activities in the city's MICE (meetings, incentives, conferences and exhibitions) calendar.

"In addition, the higher depreciation on the fully refurbished rooms impacted PBT, resulting in a marginal loss (of RM392,000),” it said.

Moving forward, the group said overall performance was forecast to remain stable on the back of long-term office tenancy agreements.

"The performance of the retail segment is expected to be slightly impacted in the following quarters as the mall is undertaking a reconfiguration exercise to refresh its offerings with more specialty shops and food outlets in order to improve its competitiveness, which is expected to augur well in the long term,” it added.

-- BERNAMA

 


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